Lima, September 15, 2024 – Alpha Mining S.A.C., a Peruvian company, signed a Mining Assignment and Option to Purchase Agreement with Coronel White S.A.C. on September 10, 2024.
Coronel White S.A.C. is a private Peruvian company incorporated under Peruvian law. It holds a Mining Assignment and an Option (the "Option") to acquire 100% of the rights, title, and interest in the Capricornio Project, located in Canta, Lima, Peru (the "Project").
The Capricornio Project is situated within the Oligocene-Pliocene Epithermal Belt. The Project comprises a single mining concession spanning 1,000 hectares and features a hydrothermal and geochemical alteration anomaly measuring 3 km in length and 1 km in width, divided into three sectors: West, Central, and East. A geophysical survey, including 13.5 km of Induced Polarization (IP) lines, identified significant resistivity and chargeability anomalies. In the West Sector, gold grades of up to 7.03 g/t Au and silver grades of up to 912 g/t Ag have been reported, associated with hydrothermal breccias. In the East Sector, a feeder zone of vuggy silica and granular silica has been identified, with gold grades reaching up to 7.58 g/t Au.
Under the terms of the Mining Assignment and Option to Purchase Agreement, Coronel White S.A.C. has a 10-year assignment period, during which, starting in the second year, it will pay a fixed monthly royalty. Additionally, a Net Smelter Return (NSR) will be applied upon the commencement of production. The purchase option is valid for a period of 5 years and may be executed within this timeframe.
The Board of Directors of Alpha Mining S.A.C. has expressed satisfaction with this agreement, viewing it as a key step in advancing the Project to the next stages of exploration and development. The company reaffirms its commitment to the sustainable growth of the Peruvian mining sector.
The Majo Project is situated within a well-known high-sulfidation epithermal gold-silver belt in south-central Peru, a region hosting major mining companies such as Teck, Rio Tinto, and Pan American Silver. Xali Gold Corp. has restarted its exploration activities in Peru by entering into an agreement for the Majo Project with Alpha Minería S.A.C. (“Alpha”).
“We are thrilled to renew our exploration focus within a proven geological setting, such as the high-sulfidation epithermal belt in south-central Peru. Our team’s extensive experience in the region, combined with the promising historical exploration results from the Majo Project, provides an excellent opportunity to unlock the untapped potential of this belt,” stated Matthew Melnyk, Director of Xali Gold.
He added, “We are eager to leverage our expertise to advance the Majo Project and fully realize its potential.”
The Majo Project lies within a renowned high-sulfidation epithermal gold-silver belt in south-central Peru, home to leading mining companies, including Teck, Sumitomo, Fresnillo, Rio Tinto, and Pan American Silver. This region hosts significant deposits such as Corihuarmi, Pico Machay, Breapampa, Minasnioc, San Genaro, Ccarhuaraso, and Palla Palla.
Historical exploration has identified anomalous gold and silver values across an area measuring approximately 1.0 km in length and 0.5 km in width. These anomalies are associated with Miocene-Pliocene magmatic activity and controlled by NW-SE structural trends.
The host rocks belong to an Oligocene-Pliocene volcanic sequence similar to those hosting world-class deposits such as Yanacocha, Alto Chicama, Pierina, Poracota, Arasi, and Aruntani.
Rock chip samples from the project area have returned gold values ranging from 0.1 to 7.7 grams per tonne (g/t) within hydrothermally altered rocks. These include vuggy silica, massive silica, silica-alunite alteration, and hydrothermal breccias, observed in outcrops across the gold-silver mineralization zone.
To date, no trenching or pitting has been conducted in areas where bedrock is obscured by alluvial cover. Although the property has never been drilled, third parties have identified preliminary drill targets, and some Environmental and Social Impact Assessment (ESIA) work has been carried out to obtain the necessary drilling permits.
Xali Gold plans to undertake its own fieldwork to refine existing drill targets and potentially identify new ones.
Details of the Agreement
Xali Gold and Alpha Minería S.A.C. have entered into a binding Memorandum of Understanding (MOU) that outlines the following terms for acquiring a 100% interest in the Majo Project:
- Cover all Annual Mining Fees, starting with those due in June 2024 (already paid).
- Issue 50,000 Xali Gold shares upon signing the Definitive Agreement.
- Issue 100,000 shares within 30 days of obtaining the first drilling permit.
- Pay $50,000 in cash upon the completion of a financing round by Xali Gold for the drilling program (minimum financing: $1,000,000).
- Execute a drilling program totaling a minimum of 3,000 meters.
- Deliver $100,000 in cash or shares 12 months after obtaining drilling permits.
- Deliver $150,000 in cash or shares 24 months after obtaining drilling permits.
- Deliver $200,000 in cash or shares 36 months after obtaining drilling permits.
- Grant a 1.5% Net Smelter Return (NSR) royalty to Alpha, with an option for Xali Gold to purchase the royalty for $1.5 million in cash or shares.
- The MOU will be replaced by a Definitive Agreement.
More Information
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There have been no significant discoveries in the last decade.
Mining companies must rely on three pillars: technical, political, and economic-financial stability.
Geological Engineer Dr. Alberto Ríos, Director of Alpha Mining, emphasizes the need for the mining industry to operate as an integrated ecosystem. He advocates collaboration between small, medium, and large-scale mining operations rather than allowing them to function independently with conflicting interests. Alpha Mining manages significant prospects, some with potential for large-scale mining. Dr. Ríos calls for renewed focus on exploration activities, which have been neglected in recent years, and urges the government to expedite the approval of Environmental Impact Studies (EIS) and other essential permits.
Below is the full interview with the distinguished Peruvian geologist:
Engineer Ríos, how long has Alpha Mining been operating in the market?
- We established the company in 2014. Over the past six years, we have worked to consolidate Alpha Mining into a competitive player in the market, leveraging the combined efforts of myself and my partner, who is also a geologist.
We formed a strategic alliance with Quántica Minefinders, a company with a background in diverse investment sectors such as agriculture, fisheries, mineral storage, and, more recently, mining. Although Quántica faced some initial challenges in the mining sector, they sought our technical expertise in mineral geological exploration, enabling us to build a strong strategic alliance.
On what foundations should mining companies build their operations?
- In my view, mining companies must be built on three key pillars:
1. Technical Expertise – This is fundamental to the success of any mining operation.
2. Political Acumen – In today’s world, political strategy is essential for navigating bureaucratic processes, negotiations, and stakeholder relationships.
3. Economic-Financial Stability – Even the best technical project will struggle without sound financial backing and economic viability.
Thousands of excellent projects exist in Peru, but they are all competing for resources and investment.
Can you share more about the Huabalito Project in Piura?
- The Huabalito Project has the potential to become a large-scale mining operation. It is a porphyry system with gold, copper, and molybdenum mineralization. We are close to securing international financing to conduct a geophysical survey and carry out 3,000 meters of diamond drilling. Discussions with investors are in advanced stages.
Our partners at Quántica Minefinders operate a gold leaching plant in Las Lomas, Piura, which processes ore from local miners. This facility is just an hour away from our project, and we are also near the well-known Tambo Grande project.
What is the local community’s perspective on mining in the region?
- In recent years, attitudes have improved significantly. Small-scale artisanal mining has shifted local perspectives, paving the way for acceptance of larger-scale mining activities and both national and foreign investment.
Artisanal miners play a crucial role as the industry’s pioneers, opening the door for larger companies to bring in advanced technology and resources. Their contributions deserve recognition and support from medium and large-scale mining operations.
Can you provide an update on the Katta Project in Lambayeque?
- The Katta Project shows great promise. Located near the Lambayeque-Cajamarca border, it lies just north of the Cañariaco project. It is another porphyry deposit with surface anomalies of copper, gold, and molybdenum.
We are in discussions with foreign mining companies interested in partnering on this project. Surface anomalies indicate copper grades of 1-2% and up to 2 g/t of gold, suggesting a deposit exceeding 300 million tons. This area is part of one of the most favorable copper porphyry belts in Peru.
What progress has been made at the Antaorco Project in Ancash?
- The Antaorco Project, located near the Marañón River, is a copper deposit with gold, nickel, and cobalt anomalies. Although the area is remote and has limited accessibility, geophysical surveys have revealed significant sulfide content.
Local communities, often overlooked by the government, have shown support for mining activities due to the potential for job creation and economic improvement.
What is the potential of the Oro de Olmos Project?
- Oro de Olmos is a low-sulfidation vein system in northern Peru, with gold grades ranging from 4 g/t to 12 g/t. It has a vein trend extending over 4 kilometers and includes five primary veins.
We plan to advance exploration through trenching and pitting to better define the continuity of the mineralization. We are also seeking a small-scale mining partner to help us bring this project into production.
What are Alpha Mining’s plans for 2021?
- Our primary goals for 2021 include developing the Oro de Olmos Project, securing financing for Huabalito, and conducting further exploration at Antaorco. For the Katta Project, we aim to find partners capable of undertaking large-scale exploration.
We remain optimistic about overcoming challenges and may add other high-potential projects to our portfolio.
You are set to participate in ProExplo 2021. Can you share more about this?
- Yes, at the invitation of the Organizing Committee led by Eng. Enrique Garay, I will present the projects discussed here in greater detail during ProExplo 2021.
What final thoughts would you like to share?
- Despite the challenges we face, we must prioritize geological exploration. Without new discoveries, we cannot replace mines nearing the end of their productive lives. Mining is a non-renewable activity, and timely exploration is critical to the industry’s future.
Additionally, the government must expedite EIS approvals and simplify permitting processes to enable faster project development.
Alpha Mining: A Peruvian Junior Exploration Company
Alpha Mining was founded by geologists Alberto Ríos Carranza and Julio Torres Nieto, whose shared passion for mineral exploration led to the company’s establishment. With a mission to discover high-potential metallic mineral deposits in Peru, Alpha Mining aims to create value for its stakeholders through efficient, profitable, sustainable, and socially responsible operations. Over the past four years, the company has been actively conducting exploration activities, contributing to the Peruvian mining sector through the identification of promising gold and copper deposits.
Peruvian junior exploration project company is contributing with the discovery of new Mineral Deposits.
It was born as a result of the enthusiasm of two geologists: Alberto Ríos Carranza and Julio Torres Nieto. Alpha Mining emerged with a specific objective: to discover high potential Metallic Mineral Deposits in Peru, which would allow creating value for its groups of interest, operating in an efficient, profitable, sustainable and socially responsible manner. Today the company has been operating for four years, carrying out exploration activities and has contributed to the country with the discovery of some deposits mainly focused on Gold and Copper.
Advancing Exploration in Central Peru
The Scorpius Project, located in Peru’s central region, has successfully completed its second exploration phase. This phase included surface mapping, geochemical rock sampling, and an induced polarization study designed to accurately define potential drilling zones.
The Canadian-owned company Sable Resources, which is collaborating on the project, shared promising initial interpretations. These findings indicate “a good correlation with high sulfidation alteration, gold anomalies, domes, and resistivity-chargeability anomalies.”
To expedite progress, Sable Resources has assembled a professional field team to complete the necessary groundwork, facilitating the drilling permit application process. Drilling is projected to commence in the first quarter of 2019.
Key Features of the Scorpius Project
Area Coverage: 400 hectares.
Historical Gold Values: Ranging from 0.1 to 7.7 grams per ton, based on 1-meter channel samples.
Currently, Sable Resources holds an option agreement to acquire 100% of the Scorpius mining concessions. This agreement entails a $1 million payment to Alpha Mining SAC, the project’s Peruvian junior owner.
Strategic Alignment
Sable Resources has stated that the acquisition aligns with its broader epithermal gold strategy, already successfully applied in Mexico and Argentina.
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